GST 2.0: FMCG companies expect magical price points for products to restore within 2 months
New Delhi, September 23 (PTI) lower GST ratios, fast -moving consumer goods players, the prices of the products of the price of the rate of lower price determination, but the magical pricing expects to restore within two months.
FMCG companies, La2, La5 and La10 is a part of the bag economy and is a product packages that are popular among middle class and rural consumers for various house and food items such as biscuits, sugar and spices.
Now, a small pack of parle g biscuit La5 costs La4.5 and a previous priced shampoo sac La2 down 2 La1.75.
Due to time restriction to reproduce new packages, companies launched product packages with low price tags to transfer the benefits of low tax rates to customers who are immediately effective.
According to industrial leaders and experts, because they do not take time to increase gram so fast because companies require changes in the factory mold, there is no other option than going to ‘non -standard’ prices.
As a stopgap measure, they reduced the MRP of popular price packages to follow the government’s instructions.
Two new SLAB GST (goods and service tax) structure of 5 percent and 18 percent of which entered into force as of September 22, has replaced the GST Council’s comprehensive four -rate task regime following the comprehensive reform aimed at increasing the country -wide consumption.
This led to the price cuts of most common use products ranging from foods, bath materials and cosmetics to white goods such as TV and air conditioning.
“Yes, it is a 100 percent temporary phenomenon. When you talk about a change or something like this, any change time in terms of any difference in package and things like so last for one and a half to two months. Companies normally work with a half to two months of lead.”
Currently, a package with a cost g biscuit La5, after passing the GST advantage S, S, La4.45.
“When talking today, my bandage was printed for October and November. He said.
When asked about the difficulties faced by customers while making small payments, he said that buyers have the options for purchasing or paying through the UPI.
Abneesh Roy, one of the Nuvama corporate stocks, said that they are “short -term measures” by FMCG companies.
“After all, companies will increase volumes and return to the coin La2, La5 and La10 rupees, etc. Because clearly La4.5 or La4.6 is not practical, “he said.
Companies will come back with magical price points and offer more skin.
These magical price points are very important because they contribute to the company’s volume growth.
Roy, “So we remain positive. We do not see it as a new trend. This is just a small deviation because of the less timeline for GST execution, because only two weeks. After all, companies will correct lessons and return with extra gamma 5, 10, 20 rupers,” Roy said.
Dabur CEO Mohit Malhotra, the company’s packages also set the prices, he said.
“In Dabur, we believe that suitability should never come at the cost of quality. Therefore, we have arranged proactive in our portfolio and proportion to the decrease in GST, including our popular low unit price packages to ensure that each consumer can benefit from the advantages of this tax reduction regardless of the budget.” He said.
